Apple Will Share the Costs of Improving Working Conditions at Foxconn China

By on May 10, 2012

Apple was the target of the intense criticism by human right activists for the last few months when some reports hit the web describing poor working conditions and miserable unhealthy environment in Chinese factories especially in Foxconn where Apple’s iOS products are manufactured and assembled. But Apple faced the whole situation wisely and cleverly succeeded to come out the nasty situation by revealing some videos of the Foxconn’s workers with positive comments for Apple and its partners. Now, a latest report from Reuters cites Foxconn chief Terry Gou, who claims that Apple will help Foxconn with massive bucks for further improvement of working conditions at Foxconn’s facilities in China.


“We’ve discovered that this (improving factory conditions) is not a cost. It is a competitive strength,” Gou told reporters on Thursday after the ground-breaking ceremony for a new China headquarters in Shanghai. 

“I believe Apple sees this as a competitive strength along with us, and so we will split the initial costs.” 

It was unclear if the split would be 50/50 or in some other ratio.

Interestingly, Foxconn has increased the salaries of its worker for several times with a few past years because a number of times the company was under the fire of strict criticism over the treatment of its employees. In this regard Foxconn has also signed an agreement with the Fair Labor Association in last March which binds the company for minimizing overtime schedules and to offer attractive packages to its employees with reduced working hours.


At present, nobody knows how much amount Apple and Foxconn are spending on the improvement of working conditions in their factories.

However, it is obvious by the fact that Foxconn would spend quite a less amount in this regard as it is already running on minimum profit margins. Contrary to that, Apple has much potential to spend massive bucks on employees’ welfare out of its sky touching piles of profits earned through its amazing iOS and Mac products.

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